Four former Nelson Mandela Bay municipal officers, three company directors and three juristic persons have been granted bail by the Gqeberha New Law Court after appearing on allegations of fraud, corruption and money laundering.
The group was arrested by the Directorate for Priority Crime Investigation (Hawks) for their alleged role in the irregular awarding of a public health tender in the municipality.
"In 2014, the Nelson Mandela Bay metro's Public Health Directorate awarded a tender to Milongani Eco Consulting CC to do environmental impact assessment. The contract is reported to have been for a duration of three years expiring in July 2017," said Hawks spokesperson Captain Yolisa Mgolodela on Tuesday.
She said the tariff rate was R350 per hour.
"Further allegations are that, within 24 hours of signing the contract, an invoice of R1 million was immediately submitted and paid by the municipality.
"It is also reported that other numerous payments were made for services that were never rendered thus prejudicing the municipality cash of R26 million. It is further alleged that even interns within the municipality with expired contracts were also paid out of this contract," she said.
Mgolodela said the suspects were released on bail on Thursday. Bail ranged fromR1000 to R20 000 depending on varying circumstances. The matter was remanded to 28 January 2022.